The Reserve Bank of India (RBI) on January 1, 2026, issued the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Amendment Directions, 2026, further to amend the Reserve Bank of India (Non-Banking Financial Companies – Prudential Norms on Capital Adequacy) Directions, 2025.
The following has been amended, namely: -
• The amendment revises risk weights for loans to “high-quality infrastructure projects”, prescribing a 75% risk weight where the borrower has repaid at least 2% of the sanctioned project debt and a 50% risk weight where repayment is at least 5%.
• If such projects subsequently fail to meet the qualifying conditions, higher risk weights as applicable under existing categories will apply.
• The repayment threshold is to be calculated on the total sanctioned project debt, including any additional debt sanctioned later.
• These amendments shall apply from April 01, 2026, or earlier upon adoption by NBFCs, with a transition period till the next review or March 31, 2027, for exposures currently enjoying lower risk weights.
[Notification no. - RBI/2025-26/168 DOR.CRE.REC.373/21-01-002/2025-26]
